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POLITICS · AUG 7, 2026

Judge Blocks Trump Administration HUD Funding Shift

U.S. District Judge Mary McElroy blocked a HUD attempt to shift $4 billion in homelessness funding away from the Housing First model.

U.S. District Judge Mary McElroy blocked an attempt by the United States Department of Housing and Urban Development to alter the funding structure of the Continuum of Care program. The program distributes $4 billion to local organizations to combat homelessness. HUD Secretary Scott Turner sought to move funding away from the Housing First model, which provides permanent housing without preconditions, toward temporary housing and services focused on long-term recovery and self-sufficiency.

Judge McElroy ruled that the administration issued its latest notice of funding opportunity in a procedurally invalid manner. This decision marks the third time federal judges have blocked similar funding shifts by the administration. New York Attorney General Letitia James, a plaintiff in the lawsuit, argued that the administration attempted to push a political agenda that jeopardized critical housing services for vulnerable populations.


Reported across 2 outlets
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United States Department of Housing and Urban DevelopmentScott TurnerLetitia JamesMary S. McElroy

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